Debt Management License Bond Doubling
Summary
Illinois HB4814 amends the Debt Management Service Act to double the required bond for license applicants from $25,000 to $50,000. The bill also establishes new fee caps for debt management service providers, allowing fees of up to 15% of monthly disbursements to creditors or $75/$100 depending on the number of creditors enrolled in the debt management plan.
What changed
HB4814 doubles the bond requirement for debt management service providers from $25,000 to $50,000, substantially increasing the financial threshold for obtaining and maintaining a license in Illinois. The bill also introduces new permissible fee structures at completion of initial counseling services, setting caps at 15% of monthly disbursements to creditors with specific dollar limits of $75 (under 6 creditors) or $100 (6 or more creditors).
Debt management service providers in Illinois must immediately review and adjust their bonding arrangements to meet the new $50,000 requirement, which effectively doubles the upfront capital needed to operate legally. Providers should also audit their current fee schedules to ensure compliance with the newly established caps on counseling completion fees.
What to do next
- Review updated bond requirements and increase surety bond coverage to $50,000 prior to next license application or renewal
- Update fee structures to comply with new caps of 15% of disbursements or $75/$100 depending on creditor count
- Ensure compliance with all amended provisions of the Debt Management Service Act
Penalties
License denial or revocation for failure to maintain required $50,000 bond; potential enforcement action for non-compliance with new fee limitations
Source document (simplified)
ChangeBridge / Illinois / HB4814 Passed HB4814 House Bill Passed 2026-02-03
DEBT MANAGEMENT LICENSE & FEES
Amends the Debt Management Service Act. Provides that every applicant for a license to engage in the debt management service business in the State shall submit to the Secretary, at the time of the application for a license, a bond to be approved by the Secretary in which the applicant shall be the obligor, in the sum of $50,000 (rather than $25,000) or the specified amount. In provisions concerning fees or penalties that may be charged by a debt management service provider, permits the charging of additional fees at the completion of the initial counseling services, which shall not exceed: (A) 15% of the amount disbursed monthly to creditors or $75, whichever is less, if there are fewer than 6 creditors enrolled in the debt management plan; or (B) 15% of the amount disbursed monthly to creditors or $100, whichever is less, if there are 6 or more creditors enrolled in the debt management plan.
Bill Details
State Illinois
Session 104th General Assembly
Chamber House
Official Source www.ilga.gov/Legislation/BillStatus?DocNum...
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Sponsors
Daniel Didech (Rep - D) Justin Cochran (Rep - D)
Action History
2026-04-07 H House Floor Amendment No. 1 Recommends Be Adopted Financial Institutions and Licensing Committee; 010-000-000 2026-04-06 H Added Chief Co-Sponsor Rep. Justin Cochran 2026-03-26 H House Floor Amendment No. 1 Rules Refers to Financial Institutions and Licensing Committee 2026-03-25 H House Floor Amendment No. 1 Referred to Rules Committee 2026-03-25 H House Floor Amendment No. 1 Filed with Clerk by Rep. Daniel Didech 2026-03-25 H Placed on Calendar 2nd Reading - Short Debate 2026-03-24 H Do Pass / Short Debate Financial Institutions and Licensing Committee; 012-000-000 2026-03-04 H Assigned to Financial Institutions and Licensing Committee 2026-02-06 H Referred to Rules Committee 2026-02-06 H First Reading 2026-02-03 H Filed with the Clerk by Rep. Daniel Didech
Committee Referrals
2026-02-06 H Rules 2026-03-04 H Financial Institutions and Licensing 2026-03-25 H Rules 2026-03-26 H Financial Institutions and Licensing
Amendments
2026-03-25 House Amendment 001
Bill Text Versions
2026-02-03 Introduced Legislative data powered by LegiScan (CC BY 4.0)
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